Analysis Of FDI's Technology Spillover Effect

Since the reform and open policy, China has attracted a large amount of foreign direct investment, specially Jiangsu Province and Guangdong Province. Therefore, comparing with Jiangsu and Guangdong who are representative area and to find out some laws how technology spillover effect comes out, can provide with some representative regional evidences to the issue and to take out some appropriate polices to promote the spillover effectIt begins with a brief introduction of related literatures from both domestic and abroad, and then carries out a production model to examine. The research in area spillover effect found that there are significantly positive spillover effect both in Jiangsu and Guangdong, but the effect in Jiangsu is more than Guangdong, Further inspection discovery hat two province different human capital level, the research and development investment, degree of openness, provincial characteristics factors and so on cause different spillover effect in area level.The research in industry spillover effect found that there are significantly positive spillover effect both in jiangsu, but Guangdong Province spillover effect is not obvious. We can find that the technology gap between the spillover effect within the industry between in Foreign-funded enterprise have a greater impact about the effect from further research.Moreover, the essay goes on with a case study of industry, we research the FDI technology spillover effect in Yap. From the perspective of the actual development of the company, we find that R&D input is significant for the occurrence of FDI spillover effect.Based on the analysis above, finally the thesis puts forwards with some policy recommendations of how to exploit the spillover effect and improve the technology development of domestic enterprises in nowadays open economy.